01, Containment
Canada's recent actions have sounded an alarm bell for the development of China's new energy industry.
Previously, China participated in equity investments in some Canadian companies, using these companies to layout the development of lithium mines overseas.
Now, the Canadian government suddenly requires these Chinese companies to divest related assets, which is clearly an attempt to start from the upstream resources and strangle China.
It seems that Western countries are stepping up their efforts to restrict China's new energy development.
The United States has always wanted to suppress China's new energy vehicles, introducing an inflation reduction bill targeting new energy, providing high financial rewards for the development of related companies, but at the same time restricting their cooperation with China.
02, Opportunities
However, for us, difficulties and opportunities coexist.
Due to the continuous interest rate hikes by the United States, many resource-exporting countries are facing economic difficulties, and their exchange rates have fallen, which naturally leads to a significant drop in prices for us. This is actually a good opportunity for China to purchase.
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Therefore, learning from the lessons of investment in Canada, we can seek more controlling rights in lithium mines directly in South American resource countries.On the other hand, the new bill in the United States will undoubtedly attract a large number of new energy-related companies to invest in the U.S., which also affects the interests of many countries, including Europe. After the European conflict, European energy resources are very scarce, and prices continue to rise. This move by the United States has given the already crisis-ridden European Union a heavy blow, causing dissatisfaction from many sides. Countries led by France and Germany were the first to oppose the U.S. inflation reduction bill, followed by Japan and South Korea, which also raised objections. The actions of the United States have made many countries feel threatened, and it is normal to be dissatisfied by many people.
03, Leading
In fact, China has already achieved a good leading advantage in the field of new energy. Last year, Tesla's stock price fell very seriously, with a cumulative decline of 69% for the whole year, resulting in the company's market value dropping from 1.1 trillion U.S. dollars to less than 380 billion, and the loss of market value is more than 5.3 trillion yuan in RMB. Tesla can be considered the leader of new energy vehicles in the United States, so how is BYD, the leader of new energy vehicles in China? In A-shares, BYD only fell by less than 6% for the whole year. The comparison of stock prices also reflects the differences in operating data. In terms of production, Tesla's current production is far less than BYD's. Tesla produced nearly 440,000 vehicles in the last quarter of 2022 and delivered 405,000, with a total of 1.31 million vehicles delivered for the year.BYD's announcement on the Hong Kong Stock Exchange revealed that in December alone, the sales of new energy vehicles reached 235,000 units, already exceeding half of Tesla's entire quarter. Over the entire year, BYD sold a total of 1.8635 million new energy vehicles, far surpassing Tesla. While Tesla is offering price reductions to boost sales, BYD is increasing prices, further highlighting the significant market treatment between the two. Tesla's main production comes from its Shanghai Gigafactory, and although Tesla also has factories in Europe, the new energy vehicle industry chain in Europe is far from as complete as in China. In fact, this is enough to demonstrate that China holds a leading position globally in the entire new energy vehicle industry chain.
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